JAIN TRADING CO Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioner is a registered dealer in rubber and latex. It is an assessee under the Kerala General Sales Tax Act and the Central Sales Tax Act.

(2.) For the assessment year 1988-89, petitioner filed annual return declaring a total turnover of Rs. 4,49,86,790. Petitioner was assessed to pay tax of Rs. 35,98,943.20 which included turnover tax also. Assessment order is dated 23rd December 1989 and is produced as Ext. P-1. It further stated that an amount of Rs. 35,50,408.90 had already been paid by the assessee and hence the balance tax due was Rs. 48,534. On receipt of Ext. P1, petitioner informed the assessing authority that an amount of Rs. 48,535 was paid on 11th January 1989 and this was not taken into account by mistake. If the above amount was also taken into account, there would be no balance. There was no demand subsequently by the assessing officer.

(3.) Third respondent informed by letter dated 11th February 1990 that petitioner has to remit an amount of Rs. 21,764 as penal interest for the year 1988-89, This is evidenced by Ext. P-3. According to the third respondent, the turnover tax was not deposited on due dates. Petitioner remitted two amounts towards turnover tax; (1) Rs. 48,535 on 19th January 1989 and (2) Rs. 1,76,399 on 11th May 1989. The turnover tax payable was Rs. 2,24,933-95. To Ext. P-3, petitioner gave Ext. P-4 reply. Liability to pay turnover tax is admitted and it is contended that petitioner was advised that the tax need be paid only at the end of the year. Thereafter, petitioner received notice under the Revenue Recovery Act to pay penal interest. Hence this Original Petition is filed challenging Exts. P-3 and P-5 notices.